Consumer Electronics Daily was a Warren News publication.

EC Closes TikTok DSA Case After Platform Ends 'Lite' Rewards Program

TikTok's commitment to permanently shutter its Lite rewards program is now binding under the Digital Services Act (DSA), the European Commission said Monday. TikTok was designated as a very large online platform under the law, and in February the EC opened a noncompliance case against the Chinese company that owns the platform. The issue was whether TikTok breached EU law in protecting minors, advertising transparency, data access for researchers and risk management of addictive design and harmful content. It then launched a second case to determine whether the company violated the DSA when it launched TikTok Lite in France and Spain in March (see 2404220024). The issue with the rewards scheme, the EC said, was that it allowed users to earn points while performing "tasks" such as watching videos, liking content and inviting friends to join the platform. The EC was concerned that the company failed to assess adequately the risks the scheme posed, such as the potential for addictive behavior. It particularly worried about the program's impact on children. That second case has ended with a "commitment decision" but without finding a breach and with no fine, EC officials said at a briefing. TikTok agreed to withdraw the scheme permanently from the EU and not launch another program that would circumvent the withdrawal. Now that the commitments are binding, any breach would mean a violation of the DSA and could spur fines, the EC said. The earlier investigation remains open.